Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

M. Commitments and Contingencies

In the ordinary course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable.

The Company initially committed up to $150,000 to investigate and pursue setting up the SPAC entity and its Sponsor. As of September 30, 2019, $118,000 had been expended, including $116,000 that was set up as prepaid offering costs on the Company’s condensed consolidated balance sheets. At September 30, 2019, at the anticipated size of $125 million for the offering plus potential underwriter overallotments, the Company was contingently liable to investing up to $4.25 million in the SPAC sponsor.

On November 6, 2019, LGL Group contributed $3.35 million to the Sponsor to fund the Sponsor’s purchase of private warrants in a private placement that closed simultaneously with the consummation of the SPAC’s initial public offering.